Burlington Stores (BURL) Est., Valuation Range Lifted at Wells Fargo Following Strong Qtr.

Wells Fargo analyst Ike Boruchow reiterated an Outperform rating while raising his estimates and valuation range on Burlington Stores (NYSE: BURL) to $88-$90 following an "extremely impressive Q2."

Boruchow commented, "BURL delivered an extremely impressive Q2 – on both an absolute and relative basis. Specifically, both comps and EPS came in well ahead of their July 18th pre-announcement (which was also above guidance), while margins/inventory continue to trend in the right direction as well (GMs +50bps with comp store inventory -7%). All in, BURL nearly doubled their initial Q2 EPS outlook, while and top and bottom-line trends have picked up for a 2nd straight quarter. On a relative basis, BURL is back to being the strongest off-pricer on the block – as their +5.4% comp came in ahead of larger peers ROST/TJX (who both comped +4% in Q2), marking the first time over 12 months that dynamic has taken place. We believe the off-price sector remains ripe for outperformance, and BURL continues to be the best way to play the rising tide (given their “underearning” productivity/margin profile). We are raising estimates to $2.96/$3.56 (from $2.88/$3.52) and valuation range to $88-$90 (from $76-$78)."

For an analyst ratings summary and ratings history on Burlington Stores click here. For more ratings news on Burlington Stores click here.

Shares of Burlington Stores closed at $78.50 yesterday.

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